Law on mobilization in Ukraine: How it affected the car market

The Ukrainian car market recorded a sharp decrease in sales in May of this year, due to the introduction of a new law on mobilization. According to the "Financial Club", after the adoption of this legislative act, consumers stopped actively visiting car dealerships, which led to a significant decrease in the demand for cars.

Andriy Androschuk, director of car leasing sales at OTP Leasing, explained that, in particular, car dealerships located near roadblocks have become almost empty, and dealers are now forced to actively look for customers, delivering cars directly to their residences.

According to him, this situation had a significant impact on the market, leading to a 30-50% monthly decrease in sales of cars of various brands. The drop in demand was not limited to domestic manufacturers, but also affected imported brands on the market.

According to Nazar Yankiv, head of the development of automotive lending at OTP Bank, from the beginning of the year there was a steady increase in demand until mid-April, but since then the decline in demand for cars has become obvious. He also emphasized that the mobilization law has become an obstacle for most dealers and importers, who are now considering opportunities for further development in the context of legal uncertainty.

Data from Ukravtoprom also confirm the worsening situation: 5,200 new passenger cars were sold in June 2023, which is 8% less than in June 2022 and 7% less than in May 2023.

In general, experts note that the car market in Ukraine is going through a difficult period, and the uncertainty associated with the law on mobilization is a key factor affecting consumer preferences and purchasing decisions of Ukrainians.